SEC approves PAL capital hike to comply with public float rule
MANILA, Philippines (UPDATE) - The Securities and Exchange Commission (SEC) has approved the application of PAL Holdings, parent company of Philippine Airlines, to raise its capital stock to P30 billion.
The move will allow PAL to issue more shares in compliance with the Philippine Stock Exchange's minimum public ownership requirement.
In a disclosure, PAL Holdings assistant corporate secretary Ma. Cecilia Pesayco said the proposed increase in its authorized capital stock to P30 billion from P23 billion was approved by the SEC last Friday.
"Please be advised that the company’s application for increase in authorized capital stock from P23 billion composed of 23 billion common shares with a par value of P1 per share to P30 billion divided into 30 billion common shares with a par value of P1 per share was approved by the SEC," she said.
PAL has already received the Certificate of Approval of Increase of Capital Stock from the SEC on Friday afternoon.
Last week, PAL Holdings issued 2.415 billion common shares with a par value of P1 per share or a total consideration of P2.415 billion to certain investors via private placement.
The total amount was placed at P2.415 billion, around 34.5% of the planned P7 billion increase in the company’s authorized capital. PAL had a public float of just 0.55%, but with the private placement, it will be over 10%.
However, Pesayco clarified the investors are unrelated to the company or any of its controlling shareholders, directors or officers.
"None of the said investors have subscribed to more than five percent of the resulting capital of the company, after the increase in capital. The said 2.415 billion new shares will hereafter be listed with the Exchange," she said.
Earlier, Pesayco said PSE president Hans Sicat informed them that the SEC has given the company until July 31 to comply with the public float requirement.
Trading of PAL Holdings and six other companies have been suspended at the PSE since January due to their failure to meet the 10% minimum public ownership requirement. They were given until June 30 to comply or else face delisting.